F & o trading tax audit

This query is : Resolved

GiRiSh JaIsWaL (Querist)
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04 August 2013 Hi,I have incurred loss in F & O trading
and as per Tax rules Section 44AD Tax Audit needs to be carried out no matter the Turnover unless posting a profit of 8% of turnover. In one of the Previous Query response on this site I saw that turnover should be more than 1 crore for mandatory Tax Audit but its not the case as per my understanding. Kindly comment and provide us the section and rules underlying the F & O Tax Audit for correct guidance of all.

Please validate the findings of this blog:-
http://www.zerodha.com/z-connect/blog/view/taxation-simplified

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 August 2013 Under sec.44AD audit is compulsory where the income is less than 8% of gross receipts and loss, otherwise no audit required u/s.44AD

Incase assessee turnover exceeds Rs. 1 crore, he is not eligible for opt sec.44AD and he covered u/s.44AB and audit is compulsory under this rules